Eurozone Investor Confidence Rises to Highest Level in Year

Investor confidence in the euro area has reached its highest level in a year in June, driven largely by economic recovery in Germany and easing concerns from U.S. tariffs, according to the Sentix survey. The eurozone investor sentiment index rose to +0.2 from -8.1 in May, surpassing forecasts, while Germany's index improved to -5.9, marking its best reading since March 2022 despite still being negative. The improvement reflects optimism about the new German government's policies and hopes for a ceasefire in Ukraine, which have helped offset earlier tariff shocks. Expectations for the eurozone climbed significantly, with the expectations gauge rising to 14.3, indicating an upturn in the European economic region. This positive momentum is reducing the European Central Bank's scope for further interest rate cuts, as current economic indicators strengthen. However, the euro currency showed little immediate response to the data, remaining steady against major currencies.